Land purchase delivers largest timber plantation expansion in decades
Timber processors, regional communities and consumers will benefit from the largest expansion of the State-owned timber plantation estate in decades, following the purchase of close to 7,000 hectares of pine plantations by Forestry Corporation of NSW.
The newly purchased estate adjoins State-owned pine plantations near the major timber processing hubs of Oberon, Tumut and Tumbarumba and will augment timber and pulpwood production over the short and long term.
Forestry Corporation of NSW already manages more than 220,000 hectares of softwood plantations as part of the $1.92 billion softwood plantation industry.
This property includes close to 7,000 hectares of pine plantation and plantable area, so this purchase is the equivalent of adding 13,000 football fields of pine plantations to the State-owned estate.
Timber is one of the most renewable products available and sustainable timber production underpins the booming housing construction and packaging industries.
State-owned pine plantations currently produce enough structural lumber to construct a quarter of the homes built in Australia each year, as well as significant volumes of renewable pulpwood for paper and packaging.
This newly-purchased plantation will be sustainably managed in line with the neighbouring State forest plantations and will continue to produce a renewable supply of timber in perpetuity.
Forestry Corporation of NSW Chairman James Millar said the purchase was made possible by substantial improvements in profitability and reduction in debt in recent years.
“Our ability to make this investment was a direct result of the efforts of the forestry team over the past few years to improve our performance. This has enabled us to pay down debt and be in a position to invest in expansion. This is an exciting new acquisition close to our existing plantation resources and key timber processing hubs, so it will offer great synergies with our existing operations,” Mr Millar said.
Media contact: Elizabeth Fowler 9407 4265/ 0408 779 903